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Who is talking?

Dr. Hanno Fichtner

 Co-Founder & Partner HitFox
Group
 Heading AppLift US

 Acquiring millions of users per
month for 150+ games

Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com

1
The 3 waves of paid User Acquisition

Top charts
Goal

Lowest CPI

ROI positive

Top position

High volume

LTV > CPI

Pricing

Flat fee

CPI

aCPI

SDKs

No SDK

Many SDKs

Few SDKs

Ad type

Incentivized
2011

Non-incent
2012

Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com

Non-intrusive
2013+
2
How to buy ROI positive traffic

Tracking setup

App Store
optimization

Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com

Traffic buying

3
Tracking setup

Campaign Tracking

In-Game Tracking

Attribution of installs to
paid and non-paid channels

Tracking of in-app events to
measure and analyze user
behavior

Methods: Fingerprinting,
IDFA
Players: MAT, Ad-X, Kochava,
Adeven

Players: Kontagent, Google
Analytics, Flurry

Common identifier needed to match channels with in-app behavior
Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com

4
KPI’s for in-game tracking
1. Retention

• Day 1-7, Day 14, Day 28, Day 30, Day 90, Day 365
• DAU: Daily Active Users
• DNU: Daily New Users

1. Monetization

• ARPU = total revenue / #users
• ARPPU = total revenue / # paying users
• Monetization rate = % of users that made in-app purchases

1. Engagement

• Average time in app / session
• Total daily sessions / DAU

1. Virality

• K-factor = viral growth rate per-user
• Trackable: Social Media, Referrals, Invites etc.
• Non-trackable: Word of Mouth

Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com

5
The in-game KPI‘s in the User‘s
Lifecycle

Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com
How to buy ROI positive traffic

Tracking setup

App Store
optimization

Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com

Traffic buying

7
ASO basics: Sticking Out and Closing the Deal

1. Discoverability
Optimizing your presence on
the app stores through the
Search Function
• Title
• Keywords: MobileDevHQ,
Searchman, AppCod.es
• IAP Items
• Understanding the specificities
of each app store is key

Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com

2. Conversion
Closing the Deal once
your game has been
discovered
•
•
•
•
•

Icon (Google Play)
Conversion Funnel
Click stages (80/20 rule)
A/B testing the screenshots
Ratings

8
The Conversion Funnel

Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com
Screenshot/Icon A-B testing for iOS

Atmio
Sparkpage
Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com

10
How to buy ROI positive traffic

Tracking setup

App Store
optimization

Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com

Traffic buying

11
Find the right traffic sources
It is critical to understand and identify the best traffic
sources for your target gamers
In app
In game
Mobile Web

Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com

12
Address the gamers appropriately
Find the best performing way to reach the audience
and address your potential new gamers
• Performance based
Pay for new gamers on a risk-free CPI, optimize the
channels based on eCPI
• + Non-incentivized
Understand if a higher chart position really pays off or
if a sustained campaign has better returns

• + Non-intrusive (detailed)
Ensure that your game is presented in the best
possible way
Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com

13
Examples of non-intrusive
integrations
Tailor the use of ads and promotions to your product,
gameplay and enrich the user experience

If done right, non-intrusive ads can show average CTR’s of 13%, Conversion
rates of 16% and result in eCPM’s of 33 USD for the publisher
Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com

14
How to optimize traffic quality

Effective CLV = CLV of one
user x k (specific for traffic
source) must be higher than
eCPI

eCPI (effective CPI) takes into
account all the costs induced by
the acquisition of one user as well
as the K-factor (organic traffic)

Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com
Customer Lifetime Value and ARPU

Customer Lifetime Value is
Average Revenue Per User * Persistence of the user over time
(Persistence/Retention being the opposite of Churn)
This metric can be applied to all kinds of relevant cohorts (acquisition
channel, date of install, geography, demographics etc.)
The two main factors influencing CLV which need to be estimated are:
• ARPU
• Retention
Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com
Modeling CLV

RDk = retention rate on day k
ARPDAUk = Average revenue per daily active user on day k

Retention
50%
40%
30%
20%
10%
0%

D1 D3 D5 D7 D9 D11 D13 D15 D17 D19 D21 D23 D25 D27 D29
Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com
What does this mean for your launch timeline?

4 weeks before
submission

2 weeks before
launch

Game is live!

• Integrate install
tracking SDK and
in-game tracking
SDK

• Set up campaigns
with traffic
partners
• Prepare creatives
• Set up tracking

• Review in-game
events
• Optimize eCPI‘s
for traffic source
and estimate CLV

Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com
BACKUP

Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com

19
Wave 1: Buy a chart position
“Can you guarantee a chart position?”

Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com

20
Wave 2: Buy volume on CPI
“Give me as many installs as possible
for this CPI!”
 No tracking beyond the install
 CPI adjusted based on happiness
with volume

Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com

21
Wave 3: Buy ROI positive traffic
“I will only pay as much as the user is
worth in my game!”
 Track the quality
 CPI adjusted based on quality
delivered

Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com

22
Examples of non-intrusive
integrations

Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com

23

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Designing the UA Process CasualConnect

  • 1. Who is talking? Dr. Hanno Fichtner  Co-Founder & Partner HitFox Group  Heading AppLift US  Acquiring millions of users per month for 150+ games Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com 1
  • 2. The 3 waves of paid User Acquisition Top charts Goal Lowest CPI ROI positive Top position High volume LTV > CPI Pricing Flat fee CPI aCPI SDKs No SDK Many SDKs Few SDKs Ad type Incentivized 2011 Non-incent 2012 Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com Non-intrusive 2013+ 2
  • 3. How to buy ROI positive traffic Tracking setup App Store optimization Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com Traffic buying 3
  • 4. Tracking setup Campaign Tracking In-Game Tracking Attribution of installs to paid and non-paid channels Tracking of in-app events to measure and analyze user behavior Methods: Fingerprinting, IDFA Players: MAT, Ad-X, Kochava, Adeven Players: Kontagent, Google Analytics, Flurry Common identifier needed to match channels with in-app behavior Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com 4
  • 5. KPI’s for in-game tracking 1. Retention • Day 1-7, Day 14, Day 28, Day 30, Day 90, Day 365 • DAU: Daily Active Users • DNU: Daily New Users 1. Monetization • ARPU = total revenue / #users • ARPPU = total revenue / # paying users • Monetization rate = % of users that made in-app purchases 1. Engagement • Average time in app / session • Total daily sessions / DAU 1. Virality • K-factor = viral growth rate per-user • Trackable: Social Media, Referrals, Invites etc. • Non-trackable: Word of Mouth Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com 5
  • 6. The in-game KPI‘s in the User‘s Lifecycle Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com
  • 7. How to buy ROI positive traffic Tracking setup App Store optimization Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com Traffic buying 7
  • 8. ASO basics: Sticking Out and Closing the Deal 1. Discoverability Optimizing your presence on the app stores through the Search Function • Title • Keywords: MobileDevHQ, Searchman, AppCod.es • IAP Items • Understanding the specificities of each app store is key Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com 2. Conversion Closing the Deal once your game has been discovered • • • • • Icon (Google Play) Conversion Funnel Click stages (80/20 rule) A/B testing the screenshots Ratings 8
  • 9. The Conversion Funnel Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com
  • 10. Screenshot/Icon A-B testing for iOS Atmio Sparkpage Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com 10
  • 11. How to buy ROI positive traffic Tracking setup App Store optimization Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com Traffic buying 11
  • 12. Find the right traffic sources It is critical to understand and identify the best traffic sources for your target gamers In app In game Mobile Web Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com 12
  • 13. Address the gamers appropriately Find the best performing way to reach the audience and address your potential new gamers • Performance based Pay for new gamers on a risk-free CPI, optimize the channels based on eCPI • + Non-incentivized Understand if a higher chart position really pays off or if a sustained campaign has better returns • + Non-intrusive (detailed) Ensure that your game is presented in the best possible way Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com 13
  • 14. Examples of non-intrusive integrations Tailor the use of ads and promotions to your product, gameplay and enrich the user experience If done right, non-intrusive ads can show average CTR’s of 13%, Conversion rates of 16% and result in eCPM’s of 33 USD for the publisher Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com 14
  • 15. How to optimize traffic quality Effective CLV = CLV of one user x k (specific for traffic source) must be higher than eCPI eCPI (effective CPI) takes into account all the costs induced by the acquisition of one user as well as the K-factor (organic traffic) Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com
  • 16. Customer Lifetime Value and ARPU Customer Lifetime Value is Average Revenue Per User * Persistence of the user over time (Persistence/Retention being the opposite of Churn) This metric can be applied to all kinds of relevant cohorts (acquisition channel, date of install, geography, demographics etc.) The two main factors influencing CLV which need to be estimated are: • ARPU • Retention Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com
  • 17. Modeling CLV RDk = retention rate on day k ARPDAUk = Average revenue per daily active user on day k Retention 50% 40% 30% 20% 10% 0% D1 D3 D5 D7 D9 D11 D13 D15 D17 D19 D21 D23 D25 D27 D29 Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com
  • 18. What does this mean for your launch timeline? 4 weeks before submission 2 weeks before launch Game is live! • Integrate install tracking SDK and in-game tracking SDK • Set up campaigns with traffic partners • Prepare creatives • Set up tracking • Review in-game events • Optimize eCPI‘s for traffic source and estimate CLV Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com
  • 19. BACKUP Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com 19
  • 20. Wave 1: Buy a chart position “Can you guarantee a chart position?” Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com 20
  • 21. Wave 2: Buy volume on CPI “Give me as many installs as possible for this CPI!”  No tracking beyond the install  CPI adjusted based on happiness with volume Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com 21
  • 22. Wave 3: Buy ROI positive traffic “I will only pay as much as the user is worth in my game!”  Track the quality  CPI adjusted based on quality delivered Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com 22
  • 23. Examples of non-intrusive integrations Dr. Hanno Fichtner – AppLift – Berlin | San Francisco | Seoul – www.applift.com 23

Notas del editor

  1. Managing Director AppLift US (ratherthanleading)
  2. http://ufert.se/user-acquisition/mobile-game-monetization/mobile-app-analytics-platforms/ formoreexamples
  3. Add picturesfromebookMakefontsizebiggerImportantbecauseofFree trafficConversionofpaidtrafficKeywordoptimizationIAP item displaynametoextendthekeywordlist (100 characters)http://blog.applift.com/2013/03/14/app-store-marketing-stick-out-and-go-for-the-close/ =&gt;ideafor a sub-structure
  4. Step 1: ReplicatetheiOS App Store with mobile pagesStep 2: Run mobile campaign in targetaudienceStep 3: Split trafficevenlybetweeninterationsStep 4: Useimpressionsandclickstodeterminebest CTRImportantbecauseofFree trafficConversionofpaidtrafficKeywordoptimizationIAP item displaynametoextendthekeywordlist (100 characters)
  5. 3 elementstoaddressthegamersappropriately
  6. Logic was toreachthecharts just forthesakeofbeing in thecharts – numberofinstallsgenerateddid not matter and also quality was not lookedatMain sourceoftraffic: incentivizedtraffic
  7. Logic was toreachthecharts just forthesakeofbeing in thecharts – numberofinstallsgenerateddid not matter and also quality was not lookedatMain sourceoftraffic: incentivizedtraffic
  8. Main sourceoftraffic: Ad networks